World Still Split Over Money as Clock Ticks on COP29

A man stands next to the logo of the United Nations Climate Change Conference "COP 29" in Azerbaijan (Reuters).
A man stands next to the logo of the United Nations Climate Change Conference "COP 29" in Azerbaijan (Reuters).
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World Still Split Over Money as Clock Ticks on COP29

A man stands next to the logo of the United Nations Climate Change Conference "COP 29" in Azerbaijan (Reuters).
A man stands next to the logo of the United Nations Climate Change Conference "COP 29" in Azerbaijan (Reuters).

A fresh draft deal published Thursday at the deadlocked COP29 climate talks shows rich and poor countries still divided as time runs out to strike a finance agreement for developing nations.
The streamlined text released in Azerbaijan recognizes developing countries need a trillion dollars per year to fight global warming, but does not present a much-sought figure needed to land the deal.
This will be the focus as nations go back to the negotiating table with just a day to go until COP29 is supposed to conclude in Baku, AFP reported.
The draft reflects the broad and opposing positions of developed countries -- which are obligated to pay climate finance -- and the developing countries that receive it.
"The new finance text presents two extreme ends of the aisle without much in between," said Li Shuo, director of the China climate hub at the Asia Society Policy Institute.
The main sticking points -- who should pay, how much and the type of funding -- remain unresolved in the slimmed-down 10-page document.
Ali Mohamed, the chair of the African Group of Negotiators, said the "elephant in the room" was the lack of a concrete number.
"This is the reason we are here... but we are no closer and we need the developed countries to urgently engage on this matter," said Mohamed, who is Kenya's climate envoy.
Rich countries have been under pressure to say how much they are willing to provide developing countries to wean off fossil fuels and build resilience against disaster.
Some developing countries have pushed for a final commitment of $1.3 trillion, mostly in grants from government coffers, and not loans they say add to debt.
The European Union and the United States, two of the biggest climate finance providers, had said they would not reveal a figure until the scope of any deal was much clearer.
"The fact there is no number specified for the climate finance goal is an insult to the millions of people on the frontlines bearing the brunt of climate change impacts," said Greenpeace's Jasper Inventor.
Mohamed Adow, a Kenyan climate activist, also lamented the lack of clarity around a figure.
"We came here to talk about money. The way you measure money is with numbers. We need a cheque but all we have right now is a blank piece of paper," said the founding director of think tank Power Shift Africa.
Developing countries, excluding China, will need $1 trillion a year in foreign assistance by 2030.
This number rises to $1.3 trillion annually by 2035, according to an expert economic assessment commissioned by the United Nations.
But many of the nations obligated to help cover this cost face political and fiscal pressures, and insist they cannot rely on their balance sheets alone.



Bitcoin is at Doorstep of $100,000

Bitcoin tokens and a price chart are seen in this illustration picture taken November 21, 2024. REUTERS/Remo Casilli/Illustration
Bitcoin tokens and a price chart are seen in this illustration picture taken November 21, 2024. REUTERS/Remo Casilli/Illustration
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Bitcoin is at Doorstep of $100,000

Bitcoin tokens and a price chart are seen in this illustration picture taken November 21, 2024. REUTERS/Remo Casilli/Illustration
Bitcoin tokens and a price chart are seen in this illustration picture taken November 21, 2024. REUTERS/Remo Casilli/Illustration

Bitcoin topped $98,000 for the first time Thursday, extending a streak of almost daily all-time highs since the US presidential election. The cryptocurrency has rocketed more than 40% in just two weeks.
Now, bitcoin is at the doorstep of $100,000 and investors do not appear to be phased by gravity or any cautionary tales of the cryptocurrencies history of volatility, The Associated Press reported.
Cryptocurrencies and related investments like crypto exchange traded funds have rallied because the incoming Trump administration is expected to be more “crypto-friendly” than the outgoing Biden administration.
As of 8:30 a.m. ET, bitcoin traded at $97,466 after rising as high as $98,349 according to CoinDesk.
Yet cryptocurrency markets remain a wild place and what comes next is impossible to know. And while some are bullish, other experts are warning of investment risks.
Here’s what you need to know.
Back up. What is cryptocurrency again? Cryptocurrency has been around for a while now but have come under the spotlight in recent years.
In basic terms, cryptocurrency is digital money. This kind of currency is designed to work through an online network without a central authority — meaning it’s typically not backed by any government or banking institution — and transactions get recorded with technology called a blockchain.
Bitcoin is the largest and oldest cryptocurrency, although other assets like Ethereum, Tether and Dogecoin have gained popularity over the years. Some investors see cryptocurrency as a “digital alternative” to traditional money — but it can be very volatile, with its price reliant on larger market conditions.
Why are bitcoin and other crypto assets soaring? A lot of the recent action has to do with the outcome of the US election.
Trump has evolved from a crypto skeptic to a crypto champion and has pledged to make the US “the crypto capital of the planet” and create a “strategic reserve” of bitcoin. His campaign accepted donations in cryptocurrency and he courted fans at a bitcoin conference in July. He also launched World Liberty Financial, a new venture with family members to trade cryptocurrencies.
Crypto industry players welcomed Trump’s victory, in hopes that he would be able to push through legislative and regulatory changes that they’ve long lobbied for. Trump also had promised that, if elected, he would remove the chair of the Securities and Exchange Commission, Gary Gensler, who has been leading the US government’s crackdown on the crypto industry and repeatedly called for more oversight.
Digital assets like bitcoin had posted notable gains in the months ahead of the election, mostly due to the early success of a new way to invest in the asset: spot bitcoin ETFs, which were approved by US regulators in January.
Inflows into spot ETFs, “have been the dominant driver of Bitcoin returns from some time, and we expect this relationship to continue in the near-term,” Citi analysts David Glass and Alex Saunders wrote in a research note two weeks ago. They added that spot crypto ETFs saw some of their largest inflows on record in the days following the election.
In April, bitcoin also saw its fourth “halving” — a preprogrammed event that impacts production by cutting the reward for mining, or the creation of new bitcoin, in half. When that reward falls, so does the number of new bitcoins entering the market. And, if demand remains strong, some analysts say this “supply shock” can also help propel the price long term.
What are the risks? History shows you can lose money in crypto as quickly as you’ve made it. Long-term price behavior relies on larger market conditions. Trading continues at all hours, every day.
At the start of the COVID-19 pandemic, bitcoin stood at just over $5,000. Its price climbed to nearly $69,000 by November 2021, in a time marked by high demand for technology assets. Bitcoin later crashed during an aggressive series of Federal Reserve rate hikes aimed at curbing inflation. The collapse of FTX in late 2022 significantly undermined confidence in crypto overall and bitcoin fell below $17,000.
Investors began returning in large numbers as inflation started to cool — and gains skyrocketed on the anticipation and then early success of spot ETFs. Experts still stress caution, especially for small-pocketed investors.
What about the climate impact? Assets like bitcoin are produced through a process called “mining,” which consumes a lot of energy. And operations relying on pollutive sources have drawn particular concern over the years.
Recent research published by the United Nations University and Earth’s Future journal found that the carbon footprint of 2020-2021 bitcoin mining across 76 nations was equivalent to the emissions from burning 84 billion pounds of coal or running 190 natural gas-fired power plants. Coal satisfied the bulk of bitcoin’s electricity demands (45%), followed by natural gas (21%) and hydropower (16%).